25.
Porter’s Five Forces
Porter’s 3 Tests
1. AsracEveness - LOW
• Despite low switching costs, industry is saturated and some
ﬁrms are consolidaCng to increase proﬁtability and reduce
compeCCon
2. Cost of Entry - HIGH
• Capital intensive industry with a high proporCon of ﬁxed costs
to total cost and Incumbents with experCse are at advantage
as well as access to favorable locaCons low
3. Beser-Oﬀ Test - HIGH
• Industry players hold strong bargaining power and have forward
integrated in an eﬀort to increase direct booking and eliminate
need for OTA. Expedia must react to threats
1
2
3
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29.
• Sabre CorporaCon is a travel technology company based in South-lake, Texas
• Founded by American Airlines in 1960 (Spun Oﬀ)
• Largest Global DistribuCon Systems provider for air bookings in North America.
Hotels
100K
Airlines
70
Data TransacEons
85K/s
OperaEons
About
29